Good afternoon. Thank you for attending today's Perdoceo Education Corporation Third Quarter 2022 Earnings Conference Call. My name is Hannah, and I will be your moderator for today's call. [Operator Instructions]. I would now like to pass the conference over to your host, Davis Snyder with Investor Relations. Please go ahead.

Thank you, Hannah. Good afternoon, everyone, and thank you for joining us for our third quarter 2022 earnings call. With me on the call today is Todd Nelson, Executive Chairman; Andrew Hurst, President and Chief Executive Officer; and Ashish Ghia, Chief Financial Officer. This conference call is being webcast live within the Investor Relations section at perdoceoed.com. A webcast replay will also be available on our site, and you can always contact the Alpha IR Group for Investor Relations support. Let me remind you that this afternoon's earnings release and remarks made today include forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions made by and information currently available to Perdoceo Education and involve risks and uncertainties that could cause actual future results, performance, business prospects and opportunities to differ materially from those expressed in or implied by these statements. These risks and uncertainties include, but are not limited to, those factors identified in Perdoceo's annual report on Form 10-K for the year ended December 31, 2021, and subsequent filings within the Securities and Exchange Commission. Except as expressly required by the securities laws, the company undertakes no obligation to update those factors or any forward-looking statements to reflect future events, developments or changed circumstances or for any other reason. In addition, today's remarks refer to non-GAAP financial measures, which are intended to supplement, but not substitute for the most directly comparable GAAP measures. The earnings release that accompanies today's call contains financial and other quantitative information to be discussed today as well as the reconciliation of the GAAP to non-GAAP measures and is available within the Investor Relations page of the company's website. With that, I would like to turn the call over to Andrew Hurst. Andrew?

Thank you, Davis. Good afternoon to everyone, and thank you for joining us. Overall, we are pleased with our operating results and continued progress during the quarter. I would like to thank our faculty, student support staff and all our other employees for their hard work dedication and diligence in serving and educating our students. Third quarter operating results came in ahead of our expectations, in part due to better-than-expected improvements in student engagement and retention as overall macroeconomic and governmental responses generally wind down from the pandemic. Operating expenses were also lower than expected further helping the results for the quarter, and we have continued to invest in data analytics and technology upgrades while maintaining appropriate levels of academic and student support services that we believe are positively impacting academic outcomes and student experiences. Let me touch upon some of the key operational highlights from the quarter. First, we experienced better-than-expected improvement in student retention and engagement as the lingering impacts from the pandemic and overall macroeconomic policies continue to wind down. Our student support teams have been leveraging technology and data analytics to serve students more efficiently, and we continue to grow our corporate population. We are pleased with the progress and expect year-end total enrollments at CTU to grow versus the prior year, while AIUS is expected to show a decline. Second, adjustments to our marketing processes that began in the third quarter of 2021 are now fully annualized. Recall that these marketing changes were made to refine our process to identify prospective students, who are more likely to succeed at one of our academic institutions. We are now fully realizing some of the intended benefits, namely stronger engagement from prospective students and improved retention. Third, we continue to focus on our corporate partnership program at those…

Thank you, Andrew. I will now review our third quarter results and then discuss our balance sheet, capital allocation and updated 2022 outlook before handing the call back to Andrew for his closing remarks. Please note that all comparisons I discuss are versus the comparative prior year period, unless otherwise stated. I would also like to remind you about our year-over-year comparability factors. Financial results for the AIU system and CTU reflect the 3 acquisitions that we have completed since the third quarter of 2021, including the most recent acquisition, which was completed on July 1, 2022. Also, total enrollment numbers that I discuss or any enrollment trends that I refer to, exclude learners participating in nondegree-seeking professional development and continuing education offerings and in degree-seeking non-Title IV self-paced program at our universities. With that said, let us begin with an overview of the operating and financial results. For the third quarter of 2022, total company operating income decreased by 22.5% to $29.3 million as compared to an operating income of $37.9 million in the prior year quarter. Adjusted operating income, which excludes certain significant and noncash items and which we believe is more reflective of the underlying operating performance, decreased to $38.7 million as compared to $46.3 million. This result exceeded the high end of our previously provided outlook range for the quarter primarily due to better-than-expected improvements in student engagement and retention, resulting in higher revenue as well as operating efficiencies realized within marketing and admissions. Net income for the quarter was $22.1 million compared to $27.8 million, equating to $0.32 per diluted share as compared to $0.39. Adjusted earnings per diluted share, which we believe is more indicative of the underlying operating performance, was $0.39 as compared to $0.45 in the prior year quarter. Now to revenue.…

Thanks, Ashish. We are pleased with our third quarter operating results and remain focused on serving and educating our students to further enhance academic outcomes and student experiences. Thank you all for joining us today, and we look forward to speaking with you again next quarter.

This concludes today's Perdoceo Education Corporation Third Quarter 2021 Earnings Call. Thank you for your participation. You may now disconnect your lines.